Risk & Crisis Management in Tourism Sector:
Recovery from Crisis
in the OIC Member Countries
131
 The industry gained strength as a result of the institutional and policy changes made by
the government after the tsunami disaster, by which the tourism sector was restructured
and its governance improved. The main change was the implementation of Tourism Act.
No. 38 and the establishment of four organizations to manage the sector in more efficient
way.
 The Government and other tourism stakeholders gained experience in marketing Sri
Lanka as a safe destination during the conflict years, while after the end of the conflict
marketing campaigns were more vigorous and effective.
 Diversifying the tourism product was a positive change in policy as tourism in Sri Lanka
was marketed for so long as a traditional model of beach tourism. The country has an
enormous amount of cultural and natural heritage-based resources including sevenWorld
Heritage Sites, temples of Buddhist heritage, national parks and other attractive natural
areas. Further investment in these attractions should enable the country to increase its
share in the international tourism market.
 Adoption of an integrated approach to tourism by establishing a close relationship
between the government and other stakeholders is helping in the development of the
sector.
 The post-war tourism boom has stimulated new investments, with some foreign hotel
chains, such as Shangri-La Asia Ltd., Movenpick and Sheraton entering the country. This
stimulates development by providing rooms to meet the demand, creating more jobs,
maintaining a high standard of services and being part of the international marketing of
high-end tourism.
 The recent improvements to roads, railways, airport and sea-ports have improved access
to various attractions, enhanced connectivity within the country and facilitated
development of new destinations in the north and east.
 The recent opening of East Coast areas for investments will encourage investors to open
new establishments in these untapped east coast beaches.
 Sri Lanka can gradually become a more attractive MICE destination with the expansion of
high-end accommodation, availability of conference halls and good transport connections
(Bhandari and Goel, 2017).
 Sri Lanka’s rich natural resources enable entrepreneurs to develop more types of special
interest tourism such as nature-based tourism, geo-tourism, health and wellness tourism
and new itineraries. Traditionally the most popular destinations were Colombo, the
Southwest coast, the Cultural Triangle and the hill country. Tour operators have now
begun diversifying itineraries to include cruise tourism, diving tourism and Ramayana
trails.
 Europeans contribute to the bulk of demand between November and February during the
northern hemisphere winter. Sri Lanka’s proximity to India and China has resulted in
sustained growth of arrivals from these countries, both of which have large populations
with increasing middle-classes and an expanding wealth base. Other source markets of
importance are Japan, the Maldives and the Middle East (Bhandari and Goel, 2017).
 The informal sector is also a developing and competing factor to formal accommodation,
especially budget hotels, small guest-houses and home-stays, which attract FIT and
backpacker travellers.